Deloitte predicts e-commerce will outperform in-store spending this holiday season
According to Deloitte's 2017 Holiday Retail Survey, online spending will exceed in-store spending for the first time.
After surveying more than 5,000 US consumers, Deloitte’s 2017 Holiday Retail Survey found, for the first time ever, that people plan to spend a majority of their holiday budget online.
The prediction is based on the survey question asking participants, “What percentage of your total holiday budget do you expect to spend: online via a desktop or laptop, online via a smartphone, online via a tablet, in-store, catalogs or direct mail, or other?”
While the survey takes an odd route to get to this number, the findings showed that 36 percent of holiday budgets will be spent on a desktop or laptop, 10 percent on a smartphone, and 5 percent on a tablet — making up the 51 percent of holiday dollars participants expect to spend online.
What percentage of your total holiday budget do you expect to spend via the following purchasing methods?
According to the survey findings, online shopping is outperforming the in-store shopping experience in five key areas, the biggest benefit being the ease of searching.
Key store attributes driving retail format preferences
Deloitte reports 83 percent of the survey participants said they would be using a desktop or laptop for their holiday shopping. (This survey question was separate from the question asking what percentage of holiday budgets would be spent online or in-store.)
When asked how they plan to use their desktop or laptops, 75 percent of respondents said browsing online, 75 percent making purchases online, 68 percent checking and comparing prices online, and 62 percent reading product reviews online.
How do you plan to use a desktop/laptop to assist you in your holiday shopping?
The survey found the top three reasons smartphones are used for holiday shopping include browsing online (67 percent), checking and comparing prices (65 percent) and tracking order status (63 percent).
Fifty-nine percent of survey participants said they planned to use their smartphones for purchasing holiday items.
When asked how they plan to use their smartphones for making holiday purchases, the largest majority (40 percent) said they would pay a retailer via the retailer’s app.
Twenty-two percent of respondents report they will pay for in-store items using a mobile wallet solution such as Apple Pay.
Planned usage of mobile as a payment platform
In the release announcing Deloitte’s 2017 Holiday Retail Survey, the firm says it forecasts an 18 to 21 percent year-over-year increase in 2017’s holiday e-commerce sales. Last year, online spending between November 2016 and January 2017 was up 14.3 percent from the year before, totaling $93.8 billion.